Amazon to Build 7.65 GW Natural Gas Plant for AI Data Center in Texas

Amazon has announced plans to construct a significant natural gas power facility in Pecos County, West Texas, which may become the most carbon-intensive power plant ever permitted in the United States. The project will support the company’s AI data center operations and is being developed in collaboration with Pacifico Energy.

The Texas Commission on Environmental Quality has issued an air permit allowing the plant to emit up to 33 million tons of CO₂ annually, a figure comparable to the emissions of several mid-sized countries. Amazon aims to begin power delivery from the site by the first quarter of 2027, with land clearing already underway.

This facility marks Amazon's first off-grid AI data center campus, a strategic move to bypass the congested grid interconnection queues that have plagued data center demand across the U.S. The plant will utilize 35 gas turbines to generate power, with over 5 GW of electricity dedicated to the campus, along with 1.8 GW of battery storage and 750 MWac of solar capacity.

While Amazon has reaffirmed its commitment to achieving net-zero emissions by 2040, the scale of emissions permitted at this facility raises questions about reconciling this goal with operational realities. Other tech giants, including Microsoft, are also pursuing dedicated natural gas projects, reflecting a broader trend in the industry to secure reliable power sources for data centers.

The implications of this project extend beyond Amazon, impacting natural gas producers, battery storage manufacturers, and solar developers, while also drawing scrutiny from environmental advocates concerned about the sustainability of such large-scale emissions.